Mark Scheme (Results) November 2010

Transcription

1 Scheme (Results) November 2010 IGCSE IGCSE ECONOMICS (4350) Paper 1F Edexcel Limited. Registered in England and Wales No Registered Office: One90 High Holborn, London WC1V 7BH

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3 1(a)(i) As price rises quantity demand falls (1 mark) Reference to data 1 mark Price rises 1.5 Euros to 2 Euros demand falls 28 kg to 26 kg. 1(a)(ii) Explanation which refers to total amount spent (total revenue)(2 marks). Inelastic: As price rises total revenue rises (2 marks). Also accept as price rises there is a less than proportionate (also accept responsive) change in quantity demanded. (2 marks). Reference to data 2 marks Total amount spent in 2007 = 1.5 Euros x 28 = 42 Euros Total amount spent in 2008 = 2 Euros x 26 = 52 Euros (4) 1(a)(iii) It is a necessity Indicative content 1(b)(i) Level Descriptor Level 3 5 Reasoned conclusion of most important factor 1 mark. Farmers might plant more wheat to get the subsidies but if the weather is bad then the crop will be ruined so the weather is far more important factor. (1 mark) Level Development of factors identified in Level 1 up to 2 marks. The supply of wheat can be affected by the weather (1 mark) If the weather is bad then the wheat crop may be ruined (1 mark). If the government gives farmers subsidies (1 mark) this will encourage them to produce more (1 mark). Level Factors identified which affect the supply of wheat up to 2 marks e.g. weather, disease, subsidies, changes in technology. 1(b)(ii) A 1(b)(iii) Accept reference to no change in supply with price change (1 mark). Reason (1 mark). The supply of wheat can t change in 1 year/2007 as it takes a long time to grow(1 mark) so as price changes there will be no change in supply (1 mark)

4 1(c)(i) Definition 2 marks the responsiveness of demand to changes in income. Accept formula for 2 marks Vague/incomplete definitions 1 mark. E.g. as income rises sot there will be a change in demand Do not accept responses which suggest that income responds to a change in demand. 1(c)(ii) As income rises so the demand for pasta rises (1 mark) Reference to Figure 1c (1mark) e.g. income rises by 100 Euros and demand rises by 2kg. 1(c)(iii) Inferior 2(a)(i) Paper = Variable cost (1 mark) Loan repayment = Fixed cost (1 mark) Rent = Fixed cost (1 mark) Ink cartridges = Variable cost (1 mark) (4) 2(a)(ii) 20,000 x 10cents (1 mark) = 200,000 cents/$2000 (1 mark) 2(a)(iii) $1100 2(a)(iv) $900 (credit wrong total if consistent with (a)(ii) & (a)(iii)) 2(a)(v) Capital = Printer (1 mark) Labour = Sam/the student (1 mark) 2(b)(i) Definition 2 marks, example, 1 mark. As output increases average costs fall e.g. bulk buying.

5 Indicative content 2(b)(ii) Level Descriptor Level 3 5 Arguments developed 2 marks but must have for and against for this level. Add justified conclusion, 1 mark, e.g. if price is all that matters then consumers will benefit but as it is not an expensive product, consumers might like the personal touch so will lose out (1 mark). Also accept Photoplus might have a local monopoly so prices may rise. Level Photoplus is a larger firm so prices may be lower (1 mark) due to economies of scale like bulk buying of paper (1 mark). Photoplus is a large company and the staff may not care as much as Paul (1 mark) so they may have lost the personal touch that a small firm gives consumers (1 mark). Level Each arguments (for or against) identified, 1 mark up to 2. 2(b)(iii) Each characteristic identified, 1 mark. E.g. aim to make a profit, owned by individuals/shareholders. Also accept not owned by government. 3(a)(i) Real (1 mark), Domestic/ National (1 mark) 3(a)(ii) It was falling 3(a)(iii) Fall in demand (1 mark) in an industry (1 mark) 3(a)(iv) Example: Jute in Bangladesh 3(a)(v) Cyclical/ demand deficient/ mass

6 3(a)(vi) Characteristic, 1 mark. E.g. falling standard of living, bankruptcy of businesses 3(b)(i) Decrease 3(b)(ii) Cheaper 3(b)(iii) Borrow 3(b)(iv) Demand 3(c)(i) Tax on income and wealth e.g. income tax 3(c)(ii) Method of finance 1 mark. E.g. sponsorship, borrowing, indirect taxation. Indicative content 3(c)(iii) Level Descriptor Level 3 5 Justified conclusion needed for 5 marks. Must mention both methods and plausible grounds for preference. Alternative approach: Direct taxation cannot be avoided (1 mark). If a person earns income then it is taxed (1 mark) whereas indirect taxes (method identified in (ii)) can be avoided (1 mark) by people not buying the goods which are taxed (1 mark). This means the government will be able to calculate how much money can be raised for the 2012 Olympics if they use direct taxation rather than indirect taxes (1 mark). Or sponsorship may be better because there is no cost to the taxpayer. Level Development of arguments. Must have advantages and disadvantages. Can have advantage of one and disadvantage of the other method, e.g. direct tax can be progressive and fairer but can have disincentive effects. Accept viewpoint of taxpayer or government. Reward parallel treatment of alternative method chosen. Level Method of finance 1 mark. E.g. sponsorship, borrowing, indirect taxation.

7 Advantages/disadvantages identified of direct taxation or method identified in (c)(ii) 1 mark Maximum 2 marks 4(a)(i) 20,400 rupees 4(a)(ii) 18,000 rupees 4(a)(iii) Invisible export 4(a)(iv) Sri Lankan rupee. Also accept Sri Lanka or rupee. 4(a)(v) 1 mark for evidence of understanding of appreciation. Demand for exports will fall (1 mark) as the price has risen (1 mark). Any link to export earnings or PED, 1 mark. (4) 4(b)(i) Reason identified, 1 mark e.g. improve standard of living, improve infrastructure, economic growth. Explanation 1 mark e.g. by borrowing a country can increase the economic growth of its country (1 mark) by investing in new industries (1 mark). 4(b)(ii) Source = 1 mark. E.g. multinational companies, other countries, aid. 4(b)(iii) Method identified, 1 mark. Explanation 1 mark. E.g. Subsidise export industries (1 mark) so that they can sell more at a cheaper price (1 mark). 4(b)(iv) Method identified, 1 mark. Explanation 1 mark. Put tariffs on imports (1 mark) so that demand will fall (1 mark).

8 Indicative content 4(b)(v) Level Descriptor Level 3 5 Need reasoned conclusion for this level. E.g. International debt can be a problem for developing countries when they can t repay it (1 mark). The interest added to the debt makes the debt bigger (1 mark) and the exchange rate can also work against the country (1 mark). If the country has spent the money in increasing economic growth and exports then it may be able to repay the debt and therefore it will be a benefit not a problem. (1 mark) Level Development of arguments up to 2 marks. Debt gets out of control and takes a growing share of GNP/GDP, countries end up borrowing more just to make the repayments. Growth could increase GNP and make repayments easier. Level Each argument or problem identified for/against 1 mark. One sided answers will be at this level. E.g. rate of interest is added to the loan, debt gets out of control. Borrowing can overcome crises, improve standard of living.

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